All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Australia announces expanded double tax treaty network

Sponsored by

Sponsored_Firms_piper.png
A significant expansion of Australia’s double tax treaty network has been announced

Jock McCormack of DLA Piper describes how the expansion of the double tax treaty network in Australia is very timely and well supported.

The Australian treasurer, Josh Frydenberg, announced on September 15 2021, a significant expansion of Australia’s double tax treaty network to stimulate economic integration through foreign investment and trade, among other things.

It is intended that Australia will enter into 10 new or updated double tax treaties by the end of 2023, the first phase of which will include a revised Indian–Australian treaty as well as new treaties with Luxembourg and Iceland.

Further revised or new treaties are proposed with Greece, Portugal and Slovenia.  According to the government’s media release, six of the 10 countries have been identified at this time with further analysis and consultation planned with a view to determining further treaty updates/renewals. 

In recent years, Australia has entered into two new treaties most importantly with Israel in 2020 and Germany in 2017.

The government has restated its commitment to modernise and expand Australia’s double tax treaty network and has committed critical resources and funding to support this expansion of Australia’s double tax treaty network.

Australia has 45 bilateral double tax treaties which will be significantly expanded by this recently announced initiative. The government has welcomed a public consultation along with a formal submission process with submissions due by October 31 2021.

Australia has been a strong supporter of the multilateral instrument which was largely operative for many of our existing double tax treaties from 2019–2020.

Although no decisions have been made at this stage various features associated with the OECD/G20 BEPS initiatives is expected including related to transparent entities, permanent establishments, concessional dividend, interest and royalty withholding taxes, limitation on treaty benefits, mutual agreement procedure, dispute resolution/arbitration and related initiatives. 

Australia was an early supporter of BEPS 1.0 including the related action plans, and has been actively involved in BEPS 2.0 including the proposed pillars one and two which are currently the subject of much global discussion and negotiation.

With the increasing integration and overlay of economic, foreign investment and security arrangements globally, this government initiative is very timely and well supported.



Jock McCormack

Partner, DLA Piper Australia

E: jock.mccormack@dlapiper.com 

 

more across site & bottom lb ros

More from across our site

The Biden administration is about to give $80 billion to the Internal Revenue Service to enhance the tax authority’s enforcement processes and IT systems.
Audi, Porsche, and Kia say their US clients will face higher prices under the Inflation Reduction Act after the legislation axes an important tax credit for electric vehicle production.
This week Brazil’s former President Luiz Inacio Lula da Silva came out in support of uniting Brazil’s consumption taxes into one VAT regime, while the US Senate approved a corporate minimum tax rate.
The Dutch TP decree marks a turn in the Netherlands as the country aligns its tax policies with OECD standards over claims it is a tax haven.
Gorka Echevarria talks to reporter Siqalane Taho about how inflation, e-invoicing and technology are affecting the laser printing firm in a post-COVID world.
Tax directors have called on companies to better secure their data as they generate ever-increasing amounts of information due to greater government scrutiny.
Incoming amendments to the treaty could increase costs on non-resident Indian service providers.
Experts say the proposed minimum tax does not align with the OECD’s pillar two regime and risks other countries pulling out.
The Malawian government has targeted US gemstone miner Columbia Gem House, while Amgen has successfully consolidated two separate tax disputes with the Internal Revenue Service.
ITR's latest quarterly PDF is now live, leading on the rise of tax technology.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree